Strib Biz Live for Oct. 7

Strib Biz Live for Oct 7, 2013

3rd & 7 37yd

3rd & 7 37yd

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Good morning, welcome to Strib Biz Live. Monday starts off with a corporate name change. Hickory Tech Corp., Mankato, is changing its name to Enventis. The company will seek shareholder approval to officially change its corporate name to Enventis at its shareholder meeting in May 2014.

A widespread effort is under way to lead the hundreds of thousands of uninsured Minnesotans to the state's new health-care insurance exchange.The state’s strategy is to blanket the state’s libraries, clinics, food shelves, fall festivals, hospitals and other locations with more than 5,000 people who have been certified to help consumers find plans the exchange, called MNsure. Here's the view from the front lines:http://www.startribune.com/lifestyle/health/226687841.html

Samsung Electronics has squelched rumors that it was in talks to acquire stock in Best Buy. “There have been no talks whatsoever,” Samsung said.

In April Samsung announced that its “Samsung Experience Shop” retail space would be installed at more than 1,400 Best Buy and Best Buy Mobile stores this year.

by Steve Alexander10/7/2013 2:46:34 PM

In addition to Hickory Tech/Enventis we've had other corporate name changes in Minnesota recently includingRimage Corp. officially changed to Qumu Corp. and stock symbol from RIMG to QUMU on Sept. 16.ValueVision Media, didn't change its corporate name but it did do a rebranding. It was more commonly known as ShopNBC but in May became ShopHQIn August 2012. Xata Corp. became XRS Corp. and changed its stock symbol from XATA to XRSC.In May 2010 The Dolan Co. dropped Media from its name going from Dolan Medaia Co. to The Dolan Co.

by Patrick Kennedy10/7/2013 2:53:51 PM

This is the week for warehouse sales. It's the lull between back to school and Halloween and many local wholesalers are getting a jump on the holidays, said George John at the University of Minnesota's Carlson School of Management.

Look for big sales at the Thymes (soaps and scents), Red Wing shoes (men and women's work boots and casual shoes), Angel's Foundation to benefit families with cancer (its last sale), Stroke of the Heart (locally-made greeting cards etc.) and Historic home furnishings. Look for more details on dates and times on the Point of Sale blog later this morning at www.startribune.com

by John Ewoldt10/7/2013 2:59:14 PM

Twitter, like many other Silicon Valley firms, is run by a bunch of guys.

Only one woman – general counsel Vijaya Gadde – is among the executive officers and directors of Twitter.

This fact has made for some interesting debates already among bloggers, who have been working several of the main points that have been brought forward in the past when the topic has been debated.

Among the most interesting is the Twitter debate that got going, on Twitter, with CEO Dick Costolo first responding to a critic quoted in a New York Times piece, talking about the "elite arrogance" of the Silicon Valley firms. Costolo said it had to be more than “checking a box” by having a token representation.

His critic Vivek Wadhwa responded that Costolo wasn’t responding to the issue, and that Silicon Valley remains a “boys’ club” that “stacks the deck against women.”

This is worth a follow up in our little emerging growth software and technology community. In looking back at news companies I have covered, I can't think of a single woman among the founders, with the exception of Tracy Simmons of LeadPages.

- More importantly, also a far higher employment to population ratio. In 2011 79 percent of Minnesotans between the ages of 25-64 year old were working compared to 67 percent in Michigan.

- In 1990 per capita income in Minnesota and Michigan were close. $33,223 in Minnesota compared to $31,552 in Michigan. No more! Minnesota’s per capita income corrected for inflation grew by $11,337 compared to $4,712 in Michigan.

- Real private sector employment earnings per capita grew over those two decades in Minnesota by $7,400 accounting for 65 percent of the state’s per capita income growth. Compared to real private sector employment earnings per capita growth in Michigan of $1,000, 21 percent of the state’s per capita income growth.

Glazer argues that beyond the severe pain in the auto industry, the lesson to learn is that states with high concentrations of knowledge-based industry will enjoy higher economic growth.

From the Rochester Post Bulletin: the Rochester City Council is also weighing pros/cons of PedalPubs. www.postbulletin.comA PedalPub accident in Minneapolis also sparked debate on the popular rideswww.startribune.com

by Patrick Kennedy10/7/2013 3:58:35 PM

It's not a business story, but maybe he'll be the next Steve Jobs. This 9-year-old who stowed away on a Delta flight to Las Vegas, getting past security and ticket agents, is the story of the day. It leads off Opening Belz today:

This 9-yr-old stowaway to Vegas is the best story in MN today – StarTribunePolyMet says water from copper mine will need 500 yrs of treatment – Duluth News TribuneTom Coburn releases damning investigation showing disability fraud – 60 MinutesEagan is bouncing back nicely from losses of Northwest and Lockheed Martin – StarTribuneFormer Lehman CFO, a woman, “leaned in” and now leans out – BusinessweekIBM’s Wason might pose a threat to Google search – WiredTwin Cities in constant battle for corporate headquarterses – Pioneer PressNostalgia for the good old days of switchboards and party lines – StarTribune​Is Silicon Valley really meritocratic? Well it’s complicated – Marketplace

According to Yahoo, “Obamacare” was one of the hottest search topics of the week. Here is Yahoo’s list of top inquiries about the Affordable Care Act, now known by fans and foes alike as Obamacare.

1. What is Obamacare?2. What are the Obamacare facts?3. What is Obamacare exactly?4. How to sign up for Obamacare.5. How much will Obamacare cost me?6. Is Congress exempt from Obamacare?7. Who is exempt from Obamacare?8. Where to sign up for Obamacare?9. Why is Obamacare bad?10. How to enroll in Obamacare.

by Todd Stone, Business Editor10/7/2013 4:11:13 PM

When people watch TV, they also talk about it on Twitter -- and advertisers appear to be noticing. Good story by our friends at the Associated Press.

The U.S. Supreme Court Monday declined to hear a Medtronic appeal in a patent lawsuit that could cost the Fridley medical products giant an estimated $245 million. The story will appear on Startribune.com shortly.

Chick-fil-A, one of the country’s fastest-growing fast-food chains, is making its first major push in the state of Minnesota, opening the first of four free-standing stores in the Twin Cities later this week.http://www.startribune.com/business/226539431.htmlOur story has already garnered more than 90 comments, based largely on the company's leadership holding conservative views, particularly on the issue of gay marriage. A taste of the debate, if you will:

Reader comment: "Nope. Not setting foot in this place. Chick-fil-A's conservative support and anti-gay bigotry is going to cost it in Minnesota. If there's protests, I might have to join up."

Another view: "...If you don't like the food or the beliefs of their CEO, don't go. ...They have the right to open their doors for business. And shocker ... their CEO has the right to have a different belief system than you. "

by Todd Stone, Business Editor10/7/2013 5:28:18 PM

We've turned on Strib Biz Live for commenting. Give us your thoughts on best and worst corporate name changes, Chick-fil-A or other topics.

Worried about the government shutdown? Jim Paulson, chief investment strategist at Wells Capital Management, a business of Wells Fargo Asset Management, urges everyone to relax a little. In a just posted research note he wrote "the widespread impression the precise actions or inaction of the U.S. government is pivotal in whether and how well economic problems facing this country are solved is exaggerated."

Up on the Point of Sale blog more details from John Ewoldt on warehouse sales of the week.

by Patrick Kennedy10/7/2013 6:01:45 PM

Federal Reserve has started rolling out the new $100 bill, featuring an array of high-tech features designed to thwart counterfeiters. (Fed stays open during shutdown)www.startribune.com

by Todd Stone, Business Editor10/7/2013 6:47:30 PM

The boom in craft beer-making means that if you own a malt barley company, then business is very, very good. Below is the tale of Rahr Malting Co., which produces enough malted barley annually for 11 billion cans of brew. (Now, that's a number that would impress Bob and Doug McKenzie.) http://www.startribune.com/business/226507481.html

CNBC ran the numbers and ranked the top ten states by median household income. Minnesota came in at ninth, behind Virginia, and just ahead of Delaware. CNBC weirdly took pains to note the large amount of bicycle commuting in Minnesota. Great! The top three states for median household income are Maryland, New Jersey and Alaska.

Latest on D.C. budget/default brouhaha: Senate Democrats plan to introduce legislation this week to raise the nation's debt limit without unrelated conditions; White House signals it would accept even a brief extension in borrowing authority to prevent an unprecedented default.http://www.startribune.com/politics/national/226704511.html

by Todd Stone, Business Editor10/7/2013 7:58:06 PM

Mike Hughlett has latest on management changes at Schwan Food Co. of Marshall, Minn. On Monday Schwan announced Dimitrios Smyrnios, a veteran food industry executive most recently with Nestlé S.A., would replace Greg Flack as CEOFlack's departure was announced Sept. 24.

CyberOptics Corp., Golden Valley, is reducing its financial guidance for the third quarter of 2013 to a net loss of approximately 12 to 17 cents per diluted share. They were previously offering guidance of a net loss of 1 to 7 cents per share.

by Patrick Kennedy10/7/2013 8:41:05 PM

Markets closed down again today. Dow, Nasdaq, S&P 500 Index even our own Bloomberg Star Tribune index dropped. The BStar index had 65 stocks that fell, lead by Christopher and Banks which was off 9 percent today and closed at $6.37 per share.

by Patrick Kennedy10/7/2013 9:04:54 PM

From the Congressional Budget Office with commentary from Calculated Risk blog:

Because a lapse in appropriated funds has caused CBO to largely shut down its operations, the Monthly Budget Review, which ordinarily would be issued this morning, will not be published today or during the duration of the government shutdown.emphasis added

The CBO has been projecting the deficit would decline significantly this year:

[T]he budget deficit will shrink this year to $642 billion, the Congressional Budget Office (CBO) estimates, the smallest shortfall since 2008. Relative to the size of the economy, the deficit this year—at 4.0 percent of gross domestic product (GDP)—will be less than half as large as the shortfall in 2009, which was 10.1 percent of GDP.